Landlord-Tenant

Question 1

What is a tenancy for years?

Answer 1

A tenancy for years is for a specified time. If this time is over one year, it must be in writing to satisfy the Statute of Frauds.

Question 2

What is a periodic tenancy?

Answer 2

A periodic tenancy is an ongoing, continuing, repetitive estate, until one party gives valid notice.

They can be created by: express agreement, implication, or operation of law.

Question 3

What is a periodic tenancy by express agreement?

Answer 3

A periodic tenancy by express agreement specifically states the period (month-to-month, year-to-year, etc.).

Question 4

What is a periodic tenancy by implication?

Answer 4

A periodic tenancy by implication is silent to duration, but periodic tenancy is implied and measured by rent payment.

(“Rent is $1000/month.”)

Question 5

What is a periodic tenancy by operation of law?

Answer 5

A periodic tenancy by operation of law comes up in two ways:

• oral lease that violates the Statute of Frauds but landlord accepts payment, so the lease is valid for the amount of rent paid
• holdover case: tenant stays after expiration of lease but landlord continues to accept rent

Question 6

How do you terminate a periodic tenancy?

Answer 6

Termination of a periodic tenancy occurs by giving proper notice. The proper termination date must end on the last day of the period.

Question 7

How does a tenancy at will end?

Answer 7

A tenancy at will can end:

• without any notice by either party
• death of either party
• waste by the tenant
• assignment by the tenant
• transfer of title by landlord
• lease by landlord to someone else

Question 8

What is a tenancy at sufferance?

Answer 8

A tenancy at sufferance isn’t a true tenancy. It is the bare possession of a holdover tenant. Landlord can hold tenant as a wrongdoing trespasser and sue or impose a new periodic tenancy (accept rent).

Question 9

What is assignment of a lease?

Answer 9

Assignment is when the tenant transfers everything. This is both a conveyance and a contract. Liability for the conveyance comes out of the privity of estate.

L leased the farm to T for one year on January 1. On April 1, T transferred the remaining interest to T2. This is an assignment.

Question 10

Is there privity of estate between landlord and whichever tenant is being asked about?

Answer 10

If yes, then there is liability on the conveyance.

We see this when there is an assignment from tenant one to tenant 2. The assignment exists between the present landlord and the present tenant (tenant 2).

Question 11

Who has liability on the contract from the privity of contract?

Answer 11

When there is an assignment, there is a landlord and the original tenant, but the tenant has assigned to tenant two. The privity of contract exists where there is an agreement between parties or the assignee expressly assumes the obligations under the lease.

Question 12

L leased land to T1. Later, T1 assigned to T2. Later, T2 assigned to T3. Neither T1 nor T2 “expressly assumes” any of the covenants.”

What is the liability for rent in a suit by L against T1, after T1 has assigned to T2?

Answer 12

Privity of contract

Question 13

L leased land to T1. Later, T1 assigned to T2. Later, T2 assigned to T3. Neither T1 nor T2 “expressly assumes” any of the covenants.”

What is the liability for rent in a suit by L against T2, before T2 assigns to T3?

Answer 13

priviate of estate - L can sue T2

Question 14

L leased land to T1. Later, T1 assigned to T2. Later, T2 assigned to T3. Neither T1 nor T2 “expressly assumes” any of the covenants.”

What is the liability for rent in a suit by landlord against T2, after T2 assigns to T3?

Answer 14

There is no liability because there is no privity of estate or privity of contract.

Question 15

When there are multiple tenants, how do you figure out who is liable to landlord?

Answer 15

Tenant is liable to landlord if there is either privity of estate or privity of contract.

Question 16

What is the touch and concern test?

Answer 16

If performance of covenant makes the land more valuable or more useful, then it meets the touch and concern test and runs with the land?

Question 17

Are subleasers (sublessees) liable to landlord?

Answer 17

Sublessees are not liable to landlords because there is no privity of contract or privity of estate between them and the landlord. The tenant still has present possessory interest and maintains privity of estate and contract with the landlord.

Question 18

What is a fixture?

Answer 18

A fixture is a chattel that has been so affixed to the land that it has ceased being personal property and has become part of the realty.

*can never be washers and dryers

Question 19

If L leases property to T, and L subsequently assigns L’s interest to L2, whom may T hold liable when X, a paramount title holder, ejects T?

Answer 19

If L leases property to T, and L subsequently assigns L’s interest to L2, T may hold L or L2 liable when X, a paramount title holder, ejects T.

A landlord may assign the rents and reversion interest that he owns. The assignee is liable to the tenants for performance of all covenants made by the original landlord in the lease, provided that those covenants run with the land. The original landlord also remains liable on all of the covenants he made in the lease. X’s evicting T from the entire leased premises breaches the covenant of quiet enjoyment, which runs with the land. Thus, L and L2 are personally liable to T.

Question 20

What happens when a landlord consents to a transfer that violates a covenant against assignment or sublease?

Answer 20

If a landlord consents to one transfer that violates a covenant against assignment or sublease, he waives his right to avoid future transfers.

Question 21

Which of the following transfers creates an assignment of the lease from T to T2?

A Four years into a six-year tenancy for years, T orally transfers his entire interest to T2 for two years.

B Two years into a four-year tenancy for years, T “assigns my entire interest to T2 for one year”.

C One year into a five-year tenancy for years, T transfers his interest “to T2 for four years; however, if T2 breaches the original lease terms, T may reenter and retake the premises”.

D Six months into a tenancy at will, T transfers “my entire interest to T2”.

Answer 21

C. If one year into a five-year tenancy for years, T transfers his interest “to T2 for four years; however, if T2 breaches the original lease terms, T may reenter and retake the premises,” the effect of the transfer is an assignment of the lease from T to T2.

A complete transfer of the entire remaining lease term constitutes an assignment of the lease. If the tenant retains any part of the remaining lease term, other than a right of reentry for breach of the original lease terms, the transfer is a sublease. Here, T transferred the remaining four years of the lease to T2. By the slight majority view, T’s reservation of a right of reentry does not result in a sublease, but rather is still an assignment.

Question 22

Does this create an assignment of the lease from T to T2: Six months into a tenancy at will, T transfers “my entire interest to T2.

Answer 22

If six months into a tenancy at will, T transfers “my entire interest to T2,” the attempted assignment is void and terminates the tenancy at will by operation of law.

A tenancy at will is a leasehold estate that is terminable at the will of either the landlord or the tenant. Such a tenancy terminates by operation of law if:

1. Either party dies;
2. The tenant commits waste;
3. The tenant attempts to assign his tenancy;
4. The landlord transfers her interest in the property; or
5. The landlord executes a term lease to a third person.

Question 23

Does this create an assignment of the lease from T to T2:

Two years into a four-year tenancy for years, T “assigns my entire interest to T2 for one year”.

Answer 23

If two years into a four-year tenancy for years, T “assigns my entire interest to T2 for one year,” the effect of the transfer is to create a sublease between T and T2. The nature of the transaction is determined by what interest, if any, the tenant retains.

Here, although T “assigned” his interest to T2, he transferred only one of the remaining two years of the lease. Thus, the transfer is a sublease rather than an assignment.

Question 24

L leases a home to a tenant for 5 years. During that 5 years, the tenant assigns the property to a friend.

Can L successfully bring a suit against the tenant for this breach of the lease?

Answer 24

The landlord can sue the tenant for breach because the tenant’s assignment to the friend did not terminate the tenant’s obligations. An assignee is in privity of estate with the landlord and is liable for all covenants that run with the land, including the covenant to pay rent. The original tenant (assignor) remains in privity of contract with the landlord and is liable for the rent reserved in the lease if the assignee abandons the property. Therefore, the tenant is liable to the landlord for the remaining rent.

Question 25

What is the result when a tenant transfers (assigns or sublets) in violation of a prohibition?

Answer 25

Generally, if a tenant transfers (assigns or sublets) in violation of a prohibition in the lease against transfers, the transfer is not void. However, the landlord usually may terminate the lease under either the lease terms or a statute.

Question 26

A landlord entered into a 10-year lease of a building with an auctioneer. A term in the auctioneer’s lease stated, “Lessor agrees to maintain all structures on the property in good repair.”

Four years into the lease, the landlord sold the property to a buyer. The buyer did not agree to perform any obligations under the lease. As instructed, the auctioneer began paying rent to the buyer. In the fifth year of the lease, the porch roof began to leak. Citing the lease terms, the auctioneer asked the buyer to repair the roof. He continually refused to do so. The auctioneer finally repaired the roof herself at a cost of $2,000. The auctioneer then brought an appropriate lawsuit to recover the money.

Absent any other facts, what is the auctioneer likely to recover?

Answer 26

The auctioneer may recover the cost of repair from either the landlord or the buyer. A landlord’s promise in a lease to maintain the property does not terminate because the property is sold. Although no longer in privity of estate, the original landlord and tenant remain in privity of contract, and the original landlord remains liable on the covenant unless there is a novation (new party takes place of old in a contract). Because neither the auctioneer nor buyer has agreed to a novation, the landlord remains liable for the covenant because he and the auctioneer remain in privity of contract. Thus, the promise to repair can be enforced against the landlord.

When leased property is sold, the purchaser may be liable for his predecessor’s promises if the promise runs with the land. A covenant in a lease runs with the land if the parties to the lease so intend and the covenant touches and concerns the land. Generally, promises to do a physical act, such as maintain or repair the property, are considered to run with the land. Thus, buyer is liable because he is in privity of estate with the auctioneer and the covenant to repair runs with the land.

Question 27

What are three ways the landlord can breach?

Answer 27

Actual eviction, partial eviction, and constructive eviction

Question 28

What is partial eviction?

Answer 28

A partial eviction is when the tenant does not terminate the leases, and the tenant stays and does not pay rent to landlord.

If partial eviction is NOT by landlord, but someone with a better title, tenant’s rent is apportioned to reflect the amount taken.

Question 29

What is constructive eviction?

Answer 29

Constructive eviction occurs when a landlord’s breach of duty renders the premises unsuitable for occupancy.

Tenant must establish:

• landlord or landlord’s agents must cause the injury
• breach substantially and materially deprived tenant of use and enjoyment of premises
• tenant gave notice and a reasonable time to repair/respond after breach
• after reasonable time, tenant vacated

Remedies: terminate the lease OR sue and seek damages

Question 30

What is an assignment?

Answer 30

An assignment is when a tenant transfers everything and does not hold anything back.

E.g.
L leased the farm to tenant for one year on January 1st. On April 1, tenant transferred the remaining interest to tenant two.

Question 31

What is a sublease?

Answer 31

A sublease is when the tenant transfers a portion of the lease period, holding some time back.

E.g.
L leased the farm to tenant for one year on January 1. On April 1, tenant transferred three months to tenant two.

Question 32

What is the hold-over doctrine?

Answer 32

If tenant continues possession after his right of possession has ended, the landlord may evict OR bind to a new periodic tenancy.

Question 33

What are the landlord’s duties if the tenant unjustifiably abandons the property?

Answer 33

Landlord has duty to mitigate damages by seeking to relet the premises. If the landlord repossesses or relets, the tenant’s liability depends on whether landlord accepted the surrender. If no surrender, tenant is liable for difference between the promised rent and rent received from reletting.

Question 34

T/F: A tenant who remains on the premises cannot claim constructive eviction.

Answer 34

True. If a tenant is occupying premises despite poor conditions, he cannot sue the landlord for constructive eviction or raise it as a defense to a landlord’s suit or rent.

To establish a claim for constructive eviction, tenant must prove:

(i) landlord breached duty
(ii) breach substantially and materially deprived the tenant
(iii) tenant gave landlord notice and reasonable time to repair
(iv) tenant vacated premises

Question 35

A covenant to pay rent runs with the land. What happens if tenant’s assignee fails to pay rent or breaches another covenant?

Answer 35

The landlord can sue the assignee because of privity of estate and he can also sue the original tenant because of privity of contract.

Question 36

T/F: If there is a latent defect and landlord knew or should have known prior to lease is entered, landlord must disclose to tenant.

Answer 36

True. Otherwise, landlord will be liable for any injuries resulting from the condition. If tenant is notified, they assume the risk for themselves and others.

Question 37

What is the liability (regarding defects) for a landlord renting a fully furnished premises for a short period?

Answer 37

Landlord is liable for injuries from any defect whether he knew of the defect

Question 38

T/F: If a landlord actually attempts to repair a defect, he is liable for any injury that results because the repairs are done negligently or gives a deceptive appearance of safety.

Answer 38

True.

Question 39

T/F: An agreement between a landlord and tenant is controlling on whether an annexed chattel is a fixture.

Answer 39

True. Absent an agreement, tenant is deemed to lack the intent to permanently improve the property and thus may remove his annexed chattels if it does not substantially damage the premises or destroy the chattel.

*can be removed by end of lease term and tenant has to pay for damage caused

Question 40

A landowner leased 150 acres of farmland to a produce company for 15 years. The produce company used the land for crops along with several other contiguous acres that it owned or leased. About four years into the lease, the state condemned a portion of the leased property because it intended to build a highway. As a result, too little property remained for the produce company to profitably farm, although there still existed the farmhouse on the property, which was being used by one of its foremen. The produce company gave the landowner 30 days’ written notice that it considered the lease to have been terminated because of the condemnation.

In a suit for breach of contract, is the landowner likely to win?

A - No, because the condemnation made it economically undesirable for the produce company to continue to lease the property.

B - No, because when there is a condemnation, the tenant’s obligation to pay rent is extinguished.

C - Yes, because the produce company can still use the farmhouse, and the rental value would be adjusted accordingly.

D - Yes, because the condemnation did not affect the produce company’s obligation to pay the full rental price, although it is entitled to share in the condemnation award.

Answer 40

(D) The landowner probably will win in a breach of contract suit. In partial condemnation cases, the landlord-tenant relationship continues, as does the tenant’s obligation to pay the entire rent for the remaining period of the lease. The tenant is, however, entitled to share in the condemnation award to the extent that the condemnation affected the tenant’s rights under the lease. Therefore, (B) and (C) are incorrect. (A) is not correct because the law of landlord and tenant traditionally refuses to recognize frustration of purpose as grounds for termination of a lease.

Question 41

A landlord leased office space to a business owner for five years, ending on November 1, reserving a yearly rent of $24,000, payable monthly. On October 1 of the fifth year, the business owner notified the landlord that he was preparing to move, but would greatly appreciate if the landlord could extend the lease for a month or two. On October 10, the landlord wrote to the business owner that she thought they could reach a satisfactory arrangement, but did not hear back from the business owner. The business owner did not vacate the office until November 20. On November 30, the landlord received a check from the business owner in the amount of $1,333 for “November’s rent” and a note that he had vacated the premises.

If the landlord brings an action against the business owner for additional rent, how will the court rule?

A -The business owner is bound to a year-to-year tenancy, because he did not vacate the premises until November 20.

B - The business owner is bound to a tenancy through December because one month’s advance notice was required to terminate.

C -The business owner is not bound, because the $1,333 check discharged him from his obligations.

D - The business owner is not bound if the court admits parol evidence of the October 10 letter from the landlord.

Answer 41

(A) The court will rule that the business owner is bound to a year-to-year tenancy because he is a hold-over tenant. When a tenant fails to vacate the premises after the termination of his right to possession, the landlord may: (i) treat the hold-over tenant as a trespasser and evict him; or (ii) bind the tenant to a new periodic tenancy.

The terms and conditions of the expired tenancy apply to the new tenancy. At least in commercial leases, the new tenancy will be year-to-year if the original lease term was for one year or more. Here, the businessman was a tenant for years because his lease was for a five-year fixed period of time. A tenancy for years ends automatically on its termination date. Therefore, as of November 1, the business owner became a hold-over tenant and the landlord had a right to bind him to a new periodic tenancy. Because the original lease was for more than one year, the business owner may be held to a year-to-year tenancy, at the stipulated rent of $24,000 per year.